Friday, 20 July, 2018

GE cuts dividend as it looks to 'reset'

Yasuyoshi ChibaAFP  Getty Images Yasuyoshi ChibaAFP Getty Images
Nellie Chapman | 14 November, 2017, 05:24

General Electric Co now has $177.69 billion valuation.

GE forecast 2018 adjusted earnings per share of $1 to $1.07 per share, compared with its earlier estimate of $2 per share. Barclays Capital maintained the stock with "Overweight" rating in Tuesday, March 21 report. Franklin Res Inc has invested 1.05% of its portfolio in General Electric Company (NYSE:GE).

POR has been the subject of several research analyst reports. J P Morgan Chase & Co lifted their price objective on shares of Portland General Electric from $47.00 to $48.00 and gave the stock a neutral rating in a research note on Monday, October 30th.

But in the wake of a collapsing share price and declining earnings, a dividend cut may actually be a good thing for General Electric. Credit Suisse Group reiterated an "outperform" rating and set a $33.00 target price on shares of General Electric in a research report on Saturday, July 22nd. The firm has "Buy" rating given on Tuesday, June 13 by Stifel Nicolaus. BidaskClub upgraded Portland General Electric from a "hold" rating to a "buy" rating in a research report on Wednesday, August 23rd. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and one has assigned a buy rating to the stock. "(GE) Stake Lowered by ELM Advisors LLC" was originally published by and is the propert of of. If you are reading this news story on another domain, it was copied illegally and reposted in violation of US & worldwide copyright & trademark legislation.

In October GE posted disappointing earnings per share of 29 cents, while analysts polled by Reuters expected a profit of 49 cents a share. The stock increased 2.50% or $0.5 on November 10, reaching $20.49. About 71.50M shares traded. Banque Pictet Cie Sa stated it has 0.3% of its portfolio in General Electric Company (NYSE:GE).

Shares fell 3.6pc in early trading to $19.72 as investors anxious how the slimmed-down company would generate cash to justify its stock valuation.

General Electric (NYSE:GE) last issued its earnings results on Friday, October 20th. The firm had revenue of $33.47 billion for the quarter, compared to the consensus estimate of $32.51 billion. Portland General Electric had a net margin of 10.21% and a return on equity of 8.65%.

Investors welcomed the latest results of Tyson Foods as the United States meat company reported quarterly profit and sales that exceeded expectations, bolstered by its beef, pork and chicken businesses. During the same period in the previous year, the company posted $0.38 EPS.

Other hedge funds also recently added to or reduced their stakes in the company. Huntington National Bank grew its holdings in shares of Portland General Electric by 1.2% during the 2nd quarter. Nexus Investment Management Inc. now owns 699,385 shares of the company's stock worth $20,716,000 after buying an additional 8,100 shares in the last quarter. BerganKDV Wealth Management LLC raised its position in shares of General Electric by 0.3% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,906 shares of the company's stock worth $178,000 after purchasing an additional 1,352 shares in the last quarter. BlackRock Inc. grew its position in shares of General Electric by 3.9% during the 2nd quarter. Franklin Resources Inc. now owns 78,024,403 shares of the conglomerate's stock worth $2,107,438,000 after purchasing an additional 23,764,129 shares during the last quarter.

GE's dividend cut - a bid to save cash when the company's cash flow is deteriorating - is the third in its history.

And for GE, while it 24 cents per share may seem paltry, consider the payouts of investors who actually hold onto the stock. About 210,785 shares traded or 19.76% up from the average. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Renaissance Group Limited Liability Corp accumulated 40,405 shares or 0.04% of the stock.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 16th.

In terms of the amount paid to investors, the dividend cut is one of the largest in USA corporate history. This represents a $1.36 annualized dividend and a yield of 2.82%. The ex-dividend date of this dividend was Friday, September 15th.